DoL Fiduciary Proposal Will Harm Middle and Low Income Americans & Small Businesses

FSR submitted a statement for the record today highlighting the financial services industry’s concerns with the Department of Labor’s proposed fiduciary rule, which will restrict low and middle class Americans’ access to financial advice and retirement planning education.

DoL Fiduciary Proposal Will Harm Middle and Low Income Americans & Small Businesses

Washington, DC— The Financial Services Roundtable (FSR) submitted a statement for the record today highlighting the financial services industry’s concerns with the Department of Labor’s proposed fiduciary rule, which will restrict low and middle class Americans’ access to financial advice and retirement planning education.

In a statement submitted to the House Education and Workforce Subcommittee on Health, Employment, Labor and Pensions, FSR warned lawmakers that the DoL’s proposal raises significant public policy and implementation concerns, and will limit information that workers could access about rolling over their retirement accounts as they change jobs. This could result in many Americans, especially minorities and younger workers, simply “cashing out” their 401ks, leaving them without any retirement savings for the future. The proposed rule could also harm small businesses by decreasing the likelihood they adopt or continue retirement savings plans.

FSR urges Congress to use its oversight and legislative authority to ensure retirement savers are not harmed.

“We strongly support the legislative principles circulated by Chairman Roe, Rep. Neal, Rep. Roskam, Rep. Lujan Grisham and a group of bipartisan House members,” FSR wrote in the statement. “The principles lay the groundwork for a long-term bipartisan solution to this critically important public policy priority. A failure to get this right will have a lasting impact on retirement savers and their access to quality professional advice and retirement planning services.”

The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs. Learn more at FSRoundtable.org.